d.light, Chapel Hill Denham announce $7.4m fund for off-grid solar expansion in Nigeria

David Afolayan
d.light launches in Nigeria with solar energy and device financing Solutions

Global transformational household products and affordable finance for low-income households provider, d.light has announced the closing of a landmark USD$7.4 million (N10 billion) securitized financing facility. This announcement was made yesterday in collaboration with Chapel Hill Denham, the largest alternative asset manager in Nigeria.

According to a statement shared with Technext, the new financing will be provided by Chapel Hill Denham’s Nigeria Infrastructure Debt Fund and will be used to scale up d.light’s low-cost Pay-Go offering of affordable, solar-powered products that is targeted at low-income households.

The structure of the financing was set up and is sponsored by African Frontier Capital. The company will also act as the master servicer and backup servicer in the transaction.

Commenting on the announcement, Nick Imudia, Chief Executive Officer of d.light, said, “This landmark financing opens up access to our range of solar-powered household goods to more low-income families and households in Nigeria, in a way that is affordable for them and sustainable for our business.

d.light, Chapel Hill Denham announce $7.4m fund for off-grid solar expansion in Nigeria
d.light CEO, Nick Imudia

“d.light has a track record of success in using securitised finance in other Sub-Saharan African countries as a flexible, scalable financing model for raising equity for off-grid solar that is guaranteed against current and future customer sales. We are now applying this experience in Nigeria as we scale up our operations there. In Chapel Hill Denham, we have a partner that is not only commercially astute but also equally dedicated to sustainable development”, he added.

Founded in 2007 by Ned Tozun a Canadian & Sam Goldman an American who met at Stanford Business School, d.light operates in over 70 markets globally. The company claims that it has sold nearly 30 million products, including solar lanterns, solar home systems, TVs, radios, and smartphones, impacting the lives of over 150 million people.

d.light launched into the Nigerian market in September 2020 with a promise to transform one billion lives globally by 2030.

Read: d.light launches in Nigeria with solar energy and device financing Solutions

Chapel Hill Denham (CHD) is one of the most trusted names in African financial services and is the leading independent investment bank in Nigeria, a leading investment manager and the leader in alternative asset management.

The firm’s funds and strategy are primarily focused on areas accretive to Nigeria and Africa’s economic development including Infrastructure and Climate, Real Estate including Student Accommodation and Affordable Housing, Gender SMEs, Venture, Creative, Healthcare and Education.

The Chief Executive Officer of Chapel Hill Denham, Bolaji Balogun commenting on the transaction said that the transaction signifies a pivotal stride in sustainable infrastructure investment in Nigeria, setting a transformative precedent for the renewable energy sector.

d.light, Chapel Hill Denham announce $7.4m fund for off-grid solar expansion in Nigeria

“By pioneering local currency securitisation for the financing of solar home systems and essential solar-powered household utilities in Nigeria, Chapel Hill Denham is catalysing innovation in the renewable energy sector, advancing sustainable development, empowering communities, and reshaping Nigeria’s infrastructure landscape for a brighter, more sustainable future for all”, he explained.

“This is another significant milestone for Chapel Hill Denham and NIDF, with the first-ever at-scale, local currency securitisation financing for Solar Home Systems and other solar-powered household goods in Nigeria” added Anshul Rai, Partner: Infrastructure & Climate at Chapel Hill Denham.

”We continue to broaden the range of financing solutions available to infrastructure providers in Nigeria, with particular emphasis on solving the greatest sustainable development challenges facing Nigeria”, he concluded.

d.light’s numbers

Recall that d.light announced in August 2023 that it had secured a $30 million securitization facility from the Eastern and Southern African Trade and Development Bank Group (TDB Group), with the capability to purchase up to $125 million of receivable assets. That brought its total potential in securitized financing raised since 2020 to $490 million.

Read: d.light secures $125m funding to meet Africa’s increasing demand for off-grid solar products

d.light launches in Nigeria with solar energy and device financing Solutions

The company also reported a 41% revenue growth in H1 2023. The results derive in large part from a growth of 143% in d.light’s business in Nigeria, Africa’s most populous country and largest economy. According to d.light, the growth in Nigeria was been driven by the launch of a Pay-Go affordable personal finance service for its solar inverter product and solar home systems.

Why does this matter?

Nigeria is Africa’s most populous country and its largest economy. Last year’s Energy Progress Report, compiled by the International Renewable Energy Agency, the International Energy Agency, the UN and the World Bank, identified Nigeria as the country with the largest number of people (c. 86 million) without access to electricity. Even those connected to the grid rarely receive a reliable supply.

In addition, nearly 80 per cent of Nigeria’s electricity is provided by GHG-emitting thermal generation sources, necessitating a rapid transition to clean and reliable energy sources. d.light and Chapel Hill Denham are committed to supporting this energy transition through innovative products and financing solutions.


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